A tentative four-year contract between the United Auto Workers Union and Chrysler was reached Wednesday just hours after workers went on strike and the same day General Motors workers okayed a separate four-year pact, according to an Associated Press report.
A person with knowledge of the Chrysler LLC agreement said it includes a company-funded but union-managed trust that will pay much of Chrysler's 18 billion U.S. dollars in long-term retiree health care costs, some guarantees that vehicles will be produced at U.S. factories, and a lower wage scale for some newly hired workers.
The guarantees translate into job security for union workers, but in many cases are only for the life of current products, the person said. GM made guarantees at many factories that include the next generation of cars, trucks and parts.
The new lower wage scale, the person said, covers new hires who would replace Chrysler Mopar parts transportation workers. Buyout and early retirement offers would be made to current workers in an effort to get them to leave, the person said.
UAW President Ron Gettelfinger said the strike against Chrysler, which is 80.1 percent owned by private equity firm Cerberus Capital Management LP, would end immediately and workers should report for their next available shift.
"This agreement was made possible because UAW workers made it clear to Chrysler that we needed an agreement that rewards the contributions they have made to the success of this company," Gettelfinger said in a statement.
Gettelfinger wouldn't release any details of the contract, but Chrysler said the tentative agreement includes the retiree health care trust. The newly private company didn't say how much money it will contribute to the trust.
"The national agreement is consistent with the economic pattern and balances the needs of our employees and company by providing a framework to improve our long-term manufacturing competitiveness," Chrysler Vice Chairman and President Tom LaSorda said in a statement.
Source:Xinhua/agencies
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